A legal dispute over Homebase Ltd’s proposal to underlet commercial premises in Wolverhampton to Lairdale Ltd moved to Londons Appeal Court today.
Homebase is challenging a High Court decision in April 2001, in which Deputy High Court Judge Bernard Livesey QC held that a proposed underletting would contravene the headlease between Allied Dunbar Assurance plc and Homebase.
The court was told that Homebase holds a lease of the premises with the reversion vested in Allied. Homebase entered into an agreement to grant an underlease to Lairdale, conditional upon securing Allieds consent to the underletting.
However, Allied claimed that the proposed underletting would be in breach of covenants in the headlease, and contended that it was entitled to refuse consent.
The High Court judge found in favour of Allied, and also dismissed a counterclaim by Homebase for damages for wrongful refusal of consent under the Landlord and Tenant Act 1988.
In the Court of Appeal today, John McDonnell QC, counsel for Homebase, argued that the judge was wrong to find that the proposed underlease would be in breach of the terms of the headlease.
The hearing continues.
Allied Dunbar Assurance plc v Homebase Ltd and another Court of Appeal (Simon Brown, Chadwick and Hale LJJ) 4 March 2002.
John McDonnell QC and Gerard Van Tonder (instructed by Russell Jones & Walker, of Cardiff) appeared for the appellant; Michael Barnes QC and Tiffany Scott (instructed by Nabarro Nathanson) appeared for the respondent.
PLS News 4/3/02
